Corporate strategies – the institutional approach

Abstract

The present paper introduces a model of corporate strategies, based on institutional theories of the firm and formalized with the concepts of the theory of games. Corporate strategies are balanced outcomes of four social games: capital market, corporate governance, product market and social responsibility. Two empirical applications of the model are then introduced: a qualitative one, consisting in comparative study of strategies deployed by Royal Dutch Shell and Israel Corporation, then a quantitative one, presenting a study of capital accumulation and operational efficiency in 79 companies listed in the Warsaw Stock Exchange.

Jensen, M.C., 1993, The Modern Industrial Revolution, Exit and the Failure of Internal Control Systems, first publication: Journal of Finance, pp. 831 – 880; revised in 1999 for : Jensen, M.C., A Theory of The Firm: Governance, Residual Claims and Organizational Forms, Harvard University Press, December 2000